Who owns the data pertaining to the Engineering For Kids franchised business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.5.6. You agree that all data pertaining to, derived from, or displayed in connection with the Franchised Business (including, without limitation, any data that you collect or develop regarding the Franchised Business' customers, clients and participants and potential customers, but excluding consumers' credit card and/or other payment information), whether or not uploaded to our system from your system, and/or downloaded from your system to our system ("Data"), is deemed to be owned exclusively by us.
We will have the right to use such Data in any manner that we deem appropriate without compensation to you.
With respect to any Data from your Franchise Business that we maintain, we grant a royalty-free non-exclusive license to you to use the Data while this Agreement (including any successor agreement) is in effect, but only in connection with operating the Franchised Business and only in accordance with the policies that we periodically establish (which may include, without limitation, terms and conditions relating to use, retention, storage and/or removal).
You acknowledge and agree that except for the right to use the Data under this clause, you will not develop or have any ownership rights in or to the Data.
You may not sell, transfer, or use Data for any purpose other than operating the Franchised Business and marketing "Engineering For Kids" Programs and services.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids International, LLC owns the data pertaining to the franchised business. Specifically, all data related to the franchised business, including customer, client, and participant information (excluding credit card and payment information), is exclusively owned by the franchisor. This data includes information collected or developed by the franchisee, regardless of whether it's uploaded to or downloaded from Engineering For Kids' system.
Engineering For Kids has the right to use this data in any manner they deem appropriate without compensating the franchisee. However, Engineering For Kids grants the franchisee a royalty-free, non-exclusive license to use the data while the franchise agreement is in effect, but only for operating the franchised business and in accordance with Engineering For Kids' policies. The franchisee acknowledges that they do not have any ownership rights to the data, except for this limited right to use it.
This arrangement allows Engineering For Kids to leverage data from all franchise locations for system-wide improvements, marketing efforts, and financial reporting. For a prospective franchisee, this means that while they contribute to data collection, they do not own the data and must adhere to Engineering For Kids' policies regarding its use. Upon termination or transfer of the franchise agreement, the franchisee must provide all data to Engineering For Kids.